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Question 43 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 43 Chapter 5 of +2- Part-
Q-43. - CH-2 - Usha +2 Book 2018 - Solution

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Question 43 Chapter 5 of +2-Part-1

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43. (Goodwill is not brought in Cash) The following was the balance sheet of Ajay, Vijay and Kamal as on 31-3-2018:

Liabilities    Rs Assets Rs
Creditors   11,000 Land & buildings 50,000
Bills Payable   6,000 Furniture 7,500
Capital Accounts      Stock 30,000
Ajay 40,000   Debtors 26,500
Vijay 33,500   Cash 1,500
Kamal 25,000 98,500    
    1,15,500   1,15,500

They share profits and losses in the ratio of 6: 5: 3. On 1-4-2015 they agreed to admit Subodh into partnership and give him a share of 10 paise in the rupee on the following terms:
(i) That Subodh should bring in Rs. 14,840 as capital.
(ii) That stock is depreciated by 10% and furniture by Rs. 900.
(iii) That a reserve of Rs. 1,300 be made for the outstanding repair bills.
(iv) That the value of land and buildings be brought up to Rs. 65,000. (v) That Subodh does not contribute anything for goodwill which was valued Rs. 8,400 for the firm.
Pass necessary journal entries to record the above arrangements and prepare the new Balance Sheet of the firm.

2. Check out the Solution of this question in Article Format:-

We are providing a solution of Question 43 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:

1. Check out the Solution of this question in Video Format:-

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The video consists solution of question numbers from 42 to 44 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 43 from the flowing video by using time stamps of the video.

The solution of Question 43 Chapter 5 of +2 Part-1: – 

Journal
Date Particulars
L.F. Debit Credit
           
1) Cash A/c Dr.   14,840  
  To Subodh’s Capital A/c       14,840
  (Being capital brought by new partner)      
         
2) Revaluation A/c Dr.   5,200  
  To Revaluation A/c       3,000
  To Furniture A/c       900
  To outstanding repairs A/c       1,300
  (Being assets and liabilities revalued)        
           
3) Land & building A/c Dr.   15,000  
  To Revaluation A/c       15,000
  (Being assets revalued)        
           
4) Revaluation A/c Dr.   9,800  
  To Ajay’s Capital A/c       4,200
  To Vijay’s Capital A/c       3,500
  To Kamal’s Capital A/c       2,100
  (Being commission due)        
           
5) Subodh’s Current A/c Dr.   840  
  To Ajay’s Capital A/c       360
  To Vijay’s Capital A/c       300
  To Kamal’s Capital A/c       180
  (Being new partner’s share in goodwill adjusted in
Sacrifice ratio 6:5:3)
       
         
Revaluation Account
Particular
Amount Particular Amount
To Stock A/c   3,000 By Land & Buildings A/c   15,000
To Furniture A/c   900      
To O/S Repairs A/c   1,300      
To Profit on revaluation transferred to Capital accounts          
– Ajay’ capital A/c 4,200        
– Vijay capital A/c 3,500        
-Kamal capital A/c 2,100 9,800      
    15,000     15,000
Partners’ Capital Account
 
Particulars Ajay Vijay Kamal Subodh Particulars Ajay Vijay Kamal Subodh
          By Balance b/d 40,000 33,500 25,000  
          By Revaluation A/c 4,200 3,500 2,100  
          By Bank A/c   14,840
          By Subodh’s Current
A/c
360 360 360  
To Balance c/d 45,560 37,300 27,280 14.840          
  45,560 37,300 27,280 14,840   45,560 37,300 27,280 14,840

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Balance Sheet
Liabilities
Amount Assets Amount
Creditors   11,000 Land & buildings   65,000
Bills Payable   6,000 Furniture   6,600
Outstanding repair expenses   1,300 Subodh’s current A/c   840
Capital Accounts     Stock   27,000
Ajay 44,560   Debtors   26,500
Vijay 37,300   Cash(1500+14,840)   16,340
Kamal 27,280        
Subodh 14,840 1,23,980      
           
    1,42,280     1,42,280

Working Notes :

Total goodwill of the firm = Rs 8,400    
Total Sales = 1 X 8,400
  10
         
  = 840 Not brought in cash    

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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